The worst car insurance companies based on class action lawsuits

Auto insurance company class action overview:

  • Who: Class action lawsuits have recently been filed against auto insurance companies such as Progressive, Geico and State Farm, among others.
  • Why: Claims against auto insurance companies include allegations of privacy breaches, baseless rate adjustments, and improperly reduced payments, among others.
  • Where: Class action lawsuits have been filed against healthcare insurance companies nationwide.

Auto insurance is an expense that every American driver must pay to stay on the road legally.

Although sometimes lamented, having the proper insurance coverage can make a significant financial difference in the event of an accident or other unforeseen event.

Auto insurance companies, however, are also a familiar target for class action lawsuits.

Claims of breach of privacy to unduly reduced total loss payments and baseless rate adjustments, among other things, auto insurance companies often find themselves on the defensive.

With that in mind, Top Class Actions takes a look at the auto insurance companies that recent class action lawsuits and settlements say are doing the worst.

Progressive, State Farm, AmFam understate total loss claims

Progressive faced allegations in October last year that it, along with its vehicle appraiser Mitchell International, had applied ‘baseless adjustments’ to lower the determined value of the vehicles, which had been considered a total loss.

The consumer behind the claim claimed Progressive and Mitchell makes “arbitrary inferences” while assessing the value of vehicles in total loss.

A separate class action lawsuit was filed against Progressive the same month, reflecting claims the company applied “baseless” adjustments to total loss vehicles.

The plaintiffs alleged that Progressive used a method called “projected sales adjustments” to reduce the value of the vehicle by applying an “assumed discount” to what the demand for a comparable vehicle would be.

Similarly, State Farm also faced claims in October last year that it had applied “baseless” adjustments to the value of vehicles considered a total loss.

The plaintiff in this case claimed that State Farm intentionally applied the adjustments to save money and breached its contractual obligations to its customers by doing this.

Also in October, State Farm was accused of “systematically underpaying” drivers who receive a refund for vehicles in total loss.

In this case, the consumer argued that State Farm broke the law and underpaid the drivers by do not include sales tax in the refund amount.

American Family Mutual Insurance, meanwhile, also faced claims in October last year that it vehicles undervalued during total loss claims.

Similarly, American Family is accused of ordering its third-party supplier to write down the value of a total loss vehicle by adding a “selling price reduction” to the selling price of comparable vehicles.

American Family already had agreed to pay $5.7 million Last April, to resolve previous claims, he made improper deductions when determining the value of total loss vehicles.

Meanwhile, in February, Liberty Mutual was able to evade claims the insurer had made improper state adjustments to reduce the amount it would have to pay for a vehicle claim.

AmFam accused of negligence, Geico with “excessive” bonuses

A separate class action lawsuit was filed against American Family last June over claims the company had treated the information negligently customers who had provided him with their driver’s license information when requesting a car insurance quote.

Consumers claimed that a pre-fill feature allowed third parties to gain unauthorized access to their driver’s license information.

Also in June 2021, Geico faced allegations that he had charged its customers excessive premiums during the pandemic.

Consumers claimed Geico was wrong to raise premiums despite a “huge” drop in car accidents due to fewer drivers on the road due to pandemic stay-at-home measures.

PEMCO, USAA and Progressive Agree to Settle to Resolve Claims

PEMCO Insurance Co. and PEMCO Mutual Insurance Co. agreed to pay $14.1 million last year to resolve claims, it underpaid policyholders on their total loss vehicle claims.

Consumers had accused PEMCO Insurance of applying inappropriate “typical trading” deductions when determining the value of a total loss vehicle.

USAA Car Insurance, meanwhile, agreed to a settlement in March 2021 to resolve claims it had made inappropriate reductions in the amount owed on personal injury protection claims.

The policyholders’ claims revolved around the USAA’s use of a “computerized bill review process” that the policyholder used to determine what would be reasonable health care costs for related treatments in a geographic area. given.

Dating back to 2016, New Mexico Progressive Car Insurance agreed to a settlement to resolve the insurer’s claims used invalid selection forms for coverage of uninsured and underinsured motorists.

Was your total loss vehicle appraised for less than you expected? You may be eligible for join a free total loss appraisal lawsuit survey. Additionally, Missouri residents who may have been subject to erroneous adjustments by Liberty Mutual or Safeco may be able to join a class action investigation for total loss assessment claim and claim compensation.



Learn more about class actions and class action settlements:

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a source of legal information that reports on class action lawsuits, class action settlements, drug-related injury lawsuits, and product liability lawsuits. Top Class Actions does not handle claims and we cannot advise you on the status of a class action settlement claim. You should contact the Settlement Administrator or your attorney for any updates regarding the status of your claim, the Claim Form, or questions about when payments should be mailed.




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Kristan F. Talley